Illustrating Even Across Disbursements by Term with Disbursement Protection Turned On

The following illustrates an example of the even split option, Even Across Disbursements by Term with disbursement protection turned on for a quarter-based institution with two disbursement IDs per term. The tables display the distribution of an original award amount and then examples of how the system distributes decreases and increases to an award.

The original award amount is 3,000.00 USD, the term target amount is 1,000.00 USD, and 500.00 USD has already been disbursed.

Term	Fall Disbursement		Winter Disbursement		Spring Disbursement
Term Target Amount	1,000.00 USD		1,000.00 USD		1000.00 USD
Scheduled Amount	500.00	500.00	500.00	500.00	500.00	500.00
Disbursement ID	D 01	D 02	D 03	D 04	D 05	D 06
Disbursed Amount	500.00	0	0	0	0	0

After disbursing disbursement ID 01 for fall term, you reduce the award from the original award amount of 3,000.00 USD to 2,700.00 USD. The term target becomes 900.00 USD. The following table shows how the system recalculates the disbursement for disbursement ID 02 to be the difference between the term target amount and what has already been disbursed for the fall term. The next disbursement ID for winter is also shown:

Term	Fall Disbursement		Winter Disbursement		Spring Disbursement
Term Target Amount	900.00 USD		900.00 USD		900.00 USD
Scheduled Amount	500.00	400.00	450.00	450.00	450.00	450.00
Disbursement ID	D 01	D 02	D 03	D 04	D 05	D 06
Disbursed Amount	500.00	400.00	450.00	0	0	0

After disbursing disbursement ID 03 for winter term, you increase the award to 4,500.00 USD. The term target amount becomes 1,500.00 USD. The system first calculates a new term target amount of 1,500.00 USD per term. Because disbursement protection is turned on, the disbursements that occurred in ID 01, ID 02, and ID 03 remain protected. Also, because the fall term is fully disbursed for 900.00 USD, the term target amount of 1,500.00 USD cannot be met. As a result, this creates residual amount of 600.00 USD. This 600.00 USD residual is distributed among any subsequent fully undisbursed terms.

Because the winter term is a partially disbursed term where the existing disbursed amount is less than the term target amount, the system subtracts what has been disbursed (450.00 USD) from the term target amount (1,500.00 USD) and distributes the difference (1,050.00 USD) to the remaining undisbursed ID in the winter term.

Finally, moving to the spring term, because it's a fully undisbursed term, the system adds any residual amount from any fully disbursed previous terms (600.00 USD in this case) to the spring term target amount (1,500.00 USD) totaling 2,100.00 USD. The system then spreads this new term target amount evenly among all undisbursed IDs in the spring term.

Term	Fall Disbursement		Winter Disbursement		Spring Disbursement
Term Target Amount	1,500.00 USD		1,500.00 USD		1,500.00 USD
Scheduled Amount	500.00	400.00	450.00	1,050.00	1,050.00	1,050.00
Disbursement ID	D 01	D 02	D 03	D 04	D 05	D 06
Disbursed Amount	500.00	400.00	450.00	0	0	0